{"id":84360,"date":"2020-01-15T09:14:33","date_gmt":"2020-01-14T22:14:33","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=84360"},"modified":"2020-01-15T10:01:40","modified_gmt":"2020-01-14T23:01:40","slug":"the-overnight-report-us-china-deal-not-ideal","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2020\/01\/15\/the-overnight-report-us-china-deal-not-ideal\/","title":{"rendered":"The Overnight Report: US-China Deal Not Ideal"},"content":{"rendered":"

Investors globally are awaiting the signing of the Phase One deal between China and the USA. Meanwhile, first corporate results did not disappoint <\/em><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
World Overnight<\/strong><\/span><\/td>\n<\/tr>\n
SPI Overnight (Mar)<\/strong><\/span><\/td>\n6918.00<\/strong><\/span><\/td>\n+ 9.00<\/strong><\/span><\/td>\n0.13%<\/strong><\/span><\/td>\n<\/tr>\n
S&P ASX 200<\/strong><\/span><\/td>\n6962.20<\/strong><\/span><\/td>\n+ 58.50<\/strong><\/span><\/td>\n0.85%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500<\/strong><\/span><\/td>\n3283.15<\/strong><\/span><\/td>\n– 4.98<\/strong><\/span><\/td>\n– 0.15%<\/strong><\/span><\/td>\n<\/tr>\n
Nasdaq Comp<\/strong><\/span><\/td>\n9251.33<\/strong><\/span><\/td>\n– 22.60<\/strong><\/span><\/td>\n– 0.24%<\/strong><\/span><\/td>\n<\/tr>\n
DJIA<\/strong><\/span><\/td>\n28939.67<\/strong><\/span><\/td>\n+ 32.62<\/strong><\/span><\/td>\n0.11%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500 VIX<\/strong><\/span><\/td>\n12.39<\/strong><\/span><\/td>\n+ 0.07<\/strong><\/span><\/td>\n0.57%<\/strong><\/span><\/td>\n<\/tr>\n
US 10-year yield<\/strong><\/span><\/td>\n1.82<\/strong><\/span><\/td>\n– 0.03<\/strong><\/span><\/td>\n– 1.62%<\/strong><\/span><\/td>\n<\/tr>\n
USD Index<\/strong><\/span><\/td>\n97.10<\/strong><\/span><\/td>\n– 0.27<\/strong><\/span><\/td>\n– 0.28%<\/strong><\/span><\/td>\n<\/tr>\n
FTSE100<\/strong><\/span><\/td>\n7622.35<\/strong><\/span><\/td>\n+ 4.75<\/strong><\/span><\/td>\n0.06%<\/strong><\/span><\/td>\n<\/tr>\n
DAX30<\/strong><\/span><\/td>\n13456.49<\/strong><\/span><\/td>\n+ 4.97<\/strong><\/span><\/td>\n0.04%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Greg Peel is still on holidays. In the meantime, Jessica Amir from Bell Direct is providing a snapshot of insights and developments from overseas markets overnight.<\/em><\/p>\n

By Jessica Amir, Bell Direct<\/p>\n

The Australian share market looks set for a very modest open with the futures suggesting a gain of 0.1%\/5 points at the open, which should still push the ASX200 to another unprecedented record after it scaled 0.9%\/59 pts higher yesterday to its highest level ever 6,962 points. <\/span><\/span><\/p>\n

The subdued start to our session is expected, as the major indices in the US had a choppy and mostly negative session, as news broke that the US won’t be cutting any more China tariffs until after the November presidential election, all the while earnings season kicked off, propping up the blue chip, Dow Jones. <\/span><\/span><\/p>\n

All this comes as the two superpower economies are to ink phase one of the trade agreement on Wednesday in Washington. As part of that deal, Trump said the US would scrap the new round of tariffs and cut existing duties to 7.5% on $120 billion on Chinese goods, while keeping the 25% tax on $250 billion of goods. <\/span><\/span><\/p>\n

J.P. Morgan<\/span><\/span><\/strong> reported a record annual profit of $36.4 billion with quarterly earnings and revenue beating analyst expectations, with surging bond trading revenue, sending its shares up over 1.5%. Citigroup's<\/strong> earnings also got a boost from strong fixed-income trading, with the divisions revenue surging 49% sending its shares 2.6% higher. <\/span><\/span><\/p>\n

Those gains helped the Dow end 0.1%\/33 points higher while the broader S&P 500 closed -0.2% lower, also bracing for profits this reporting season to fall -2% on a yearly basis in the fourth quarter, according to FactSet research, while the Nasdaq lost -0.24%. <\/span><\/span><\/p>\n

Across the Atlantic Ocean, European stocks<\/strong> wait ever so slightly as traders await phase one of the trade deal being signed. The Stoxx<\/strong> 600 rose 0.3%, the French CAC<\/strong> closed 0.01% higher, the Germany DAX<\/strong> closed flat after gaining 5 points, and FTSE<\/strong> also only modestly rose 0.1% . <\/span><\/span><\/p>\n

Gold<\/span><\/span><\/strong> slipped -0.2% to US$1,546 an ounce.<\/span><\/span><\/p>\n

Oil <\/span><\/span><\/strong>rose, snapping its five-day losing streak, adding 0.3% to US$58.39 a barrel. <\/span><\/span><\/p>\n

Iron ore<\/span><\/span><\/strong> gained 0.5% to US$94.03 a tonne.<\/span><\/span><\/p>\n

Australian dollar <\/span><\/span><\/strong>tracked steady overnight ahead of the deal being signed and at 69.03 US, holding a week high.<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Spot Metals,Minerals & Energy Futures<\/strong><\/span><\/td>\n<\/tr>\n
Gold (oz)<\/strong><\/span><\/td>\n1546.40<\/strong><\/span><\/td>\n– 1.90<\/strong><\/span><\/td>\n– 0.12%<\/strong><\/span><\/td>\n<\/tr>\n
Silver (oz)<\/strong><\/span><\/td>\n17.76<\/strong><\/span><\/td>\n– 0.18<\/strong><\/span><\/td>\n– 1.00%<\/strong><\/span><\/td>\n<\/tr>\n
Copper (lb)<\/strong><\/span><\/td>\n2.82<\/strong><\/span><\/td>\n+ 0.02<\/strong><\/span><\/td>\n0.76%<\/strong><\/span><\/td>\n<\/tr>\n
Aluminium (lb)<\/strong><\/span><\/td>\n0.80<\/strong><\/span><\/td>\n+ 0.00<\/strong><\/span><\/td>\n0.25%<\/strong><\/span><\/td>\n<\/tr>\n
Lead (lb)<\/strong><\/span><\/td>\n0.87<\/strong><\/span><\/td>\n+ 0.01<\/strong><\/span><\/td>\n0.94%<\/strong><\/span><\/td>\n<\/tr>\n
Nickel (lb)<\/strong><\/span><\/td>\n6.23<\/strong><\/span><\/td>\n– 0.13<\/strong><\/span><\/td>\n– 2.01%<\/strong><\/span><\/td>\n<\/tr>\n
Zinc (lb)<\/strong><\/span><\/td>\n1.07<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 0.78%<\/strong><\/span><\/td>\n<\/tr>\n
West Texas Crude <\/strong><\/span><\/td>\n58.23<\/strong><\/span><\/td>\n+ 0.15<\/strong><\/span><\/td>\n0.26%<\/strong><\/span><\/td>\n<\/tr>\n
Brent Crude<\/strong><\/span><\/td>\n64.49<\/strong><\/span><\/td>\n+ 0.29<\/strong><\/span><\/td>\n0.45%<\/strong><\/span><\/td>\n<\/tr>\n
Iron Ore (t) futures<\/strong><\/span><\/td>\n96.15<\/strong><\/span><\/td>\n+ 1.65<\/strong><\/span><\/td>\n1.75%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n\n\n
BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS<\/span><\/td>\n<\/tr>\n
COL<\/td>\nCOLES GROUP<\/td>\nDowngrade to Underweight from Equal-weight<\/td>\nMorgan Stanley<\/td>\n<\/tr>\n
DCG<\/td>\nDECMIL GROUP<\/td>\nDowngrade to Neutral from Buy<\/td>\nCiti<\/td>\n<\/tr>\n
EVN<\/td>\nEVOLUTION MINING<\/td>\nUpgrade to Outperform from Underperform<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
NWL<\/td>\nNETWEALTH GROUP<\/td>\nUpgrade to Buy from Neutral<\/td>\nCiti<\/td>\n<\/tr>\n
WOW<\/td>\nWOOLWORTHS<\/td>\nUpgrade to Equal-weight from Underweight<\/td>\nMorgan Stanley<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

For more detail go to FNArena's Australian Broker Call Report<\/a>, which is updated each morning, Mon-Fri.<\/p>\n

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website.  Click here<\/a>. (Subscribers can access prices on the website.)<\/em><\/p>\n

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's – see disclaimer on the website)<\/strong><\/em><\/p>\n

All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts on the website and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.<\/em><\/p>\n

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com<\/em><\/p>\n

FNArena is proud about its track record and past achievements: Ten Years On<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Investors globally are awaiting the signing of the Phase One deal between China and the USA. Meanwhile, first corporate results did not disappoint (Available for non-subscribers after 10am)<\/p>\n","protected":false},"author":3,"featured_media":84365,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[84],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/84360"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=84360"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/84360\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media\/84365"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=84360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=84360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=84360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}